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Lou Glazer, president of Michigan Future Michigan’s economic future will depend on whether it can attract talented workers and companies in the knowledge-based service industries, and depend far less on employment in automotive factories, according to a report being released last week. Michigan Future Inc.’s new report, “The New Path to Prosperity: Lessons for Michigan from Two Decades of Economic Change,” details the state’s decline in employment and employment earnings in the past two decades, and how that compares nationally and with fellow Great Lakes state Minnesota. Lou Glazer, president of Michigan Future, co-authored the report with Don Grimes, senior research specialist at the University of Michigan’s Institute for Research on Labor, Employment and the Economy. “Michigan’s problem is that knowledge-based services are not growing nearly as fast as other states in the country,” Glazer said. The report shows Michigan has the same percentage of the workforce, 26.3 percent, in the knowledge-based services industries, but employment earnings in that sector have lagged. The share of private earnings per capita nationally in the knowledge-based services in 1990 was 32.8 percent. By 2011, that had grown to 41.5 percent. For manufacturing, the share was 20.7 percent in 1990, and declined to 12.1 percent by 2011. In Michigan, the share of private sector earnings per capita in the knowledge-based services in 1990 was 30 percent, and increased to 38 percent by 2011. It also saw a large drop in earnings from manufacturing, from 32 percent in 1990 to 20 percent in 2011. The vast majority of the manufacturing job losses in the past two decades in Michigan came in the most recent decade, with the loss of 309,400 jobs. From 1990 to 2001, which the report called the “boom times” for the state, manufacturing lost 8,400 jobs. “Over two decades, in good economies and bad economies, factory work is declining,” he said. Glazer said it should not be Michigan’s goal to try and re-create a state filled with high-paid factory jobs, the way it once was. “That doesn’t work anymore because of globalization and technology,” he said. Glazer said for Michigan to move forward, it’s more of a vision problem than a policy problem. Some state officials for years rested their hopes on landing a Toyota Motor Corp. factory in the state, he said, and all the assembly lines jobs it would bring with it. “That was seen as the big get,” he said. However, in Ann Arbor, the state had already landed Toyota’s largest technical center. “And nobody sees that as an asset,” he said. Minnesota is a state in which such jobs are viewed as an asset, and is one of several factors that Glazer said is drawing young and talented workers there. That state is also growing its own talent, as it is a top 10 state with adults who have a college degree. Michigan ranks in the mid-30s, he said. And that translates into higher wages. In 1990, Minnesota’s personal income per capita was $33,223. In 2011, it had risen to $44,560. In Michigan, per capita income in 1990 was close to that of Minnesota’s at $31,552, but by 2011, it has not risen nearly as much, reaching just $36,264. During that time, Minnesota put a priority on education, Glazer said. Michael Boulus, executive director of the Lansing-based Presidents Council, State Universities of Michigan knowles-cadbury-brown.co.uk , said it is no surprise Minnesota is doing so much better than Michigan. “They invest very heavily in higher education,” he said. Boulus said state financial support of higher education in Michigan used to account for about 75 percent of university budgets, with 25 percent coming from various other sources. Over the past 30 years, that has completely flipped, with state assistance now accounting for less than 25 percent. While college attainment is one factor, it is not the only one and should not be viewed in a vacuum, said Lisa Baragar Katz, executive director of the Workforce Intelligence Network for Southeast Michigan. Katz said it is becoming clear that across the country employers are looking for people with a four-year degree high quality replica hermes bags , and the percentage of adults pursuing those degrees is increasing as well. However, some companies are also understanding that they don’t always need someone with a degree, they need someone who can do the job. “There are lots of people with degrees who can’t do anything,” she said. “Degree attainment is important, but employers are looking to make sure people are work-ready. It’s a really good thing to look at the competency of the individual.” Glazer said that aside from the number of college graduates Minnesota has, the state also spent time creating communities in which people wanted to live and work. “They have a central city that works,” Glazer said. “That stuff really matters.” Chris Gautz: (517) 403-4403, [email
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